Merck KGaA signs potential $1 billion deal with UK biotech
pharmafile | June 5, 2017 | News story | Sales and Marketing | F-star, Merck KGaA
UK biotech, F-Star, has scored a boost to its coffers with another link-up with a big pharma company, this time with Merck KGaA. The deal sees €115 million exchange hands in the initial stages of the deal; an unspecified amount will go into an upfront payment, with the rest being funnelled into R&D development and potential milestone payments. Depending on further success, this figure could rise significantly to $1 billion in the future, if Merck takes up its options.
The overall deal sees Merck gain an option on a preclinical, lead asset LAG-3, PD-L1 bispecific – an addition that could supplement its recent success to bring Bavencio, alongside Pfizer, to market. Beyond this, it has also picked up options on four other preclinical therapies. If it chooses to exercise the option, F-star will grant Merck the rights to develop and commercialise the bispecific antibodies.
John Haurum, CEO of F-star, said: “This immuno-oncology collaboration expands our strong relationship with Merck and is a further validation of the potential of F-star’s bispecific antibody platform. Our vision is to transform the treatment of cancer. This is the objective of partnering our lead asset FS118 and other next-generation immuno-oncology compounds with Merck. This deal also underscores the attractiveness of our asset-centric business model, which provides a flexible deal-making framework whilst at the same time maximising the value of F-star’s bispecific programmes and technology platform.”
The deal further consolidates F-star’s growing reputation within the industry, only recently being named Life Science Innovation champion at Business Weekly Awards. The deal adds to previous deals signed by the company involving AbbVie, BMS and Denali Therapeutics. The company currently operates with 80 people in its Cambridge base, and has managed to raise $200 million in capital and revenues.
Ben Hargreaves
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